News Desk: The domestic currency of India, rupee, hit the all time low of 54.32 against US dollar on Wednesday, declining less than the previous sessions’ low of 54.15.


It crossed its record low of 54.30 that had hit in December last year.


As a result of the declining rupee value the BSE Sensex and NSE Nifty crashed 2% each on Tuesday afternoon. The fall has emphasized the vulnerability of the country towards facing fiscal hazards.


It has been reported that the pressure of dollar demand was such that the Reserve Bank of India (RBI) had to give up.


From September 11 to March 12 the RBI sold $20.69 billion in the spot market to check the decline in the rupee, which hit an all-time low of 54.30 last year in December.


However, economists have opined that the situation has been attained thanks to the lack of government policies to deal with the fiscal imbalance and also absence of encouragement towards investment. In this condition the probability of further turn down of the rupee value to the US dollar may not be avoided. Some of the traders are of the view that it may further drop to a record low of Rs 56 per dollar this year.

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